Senior Honors Projects, 2010-current

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Date of Award

Spring 2014

Document Type


Degree Name

Bachelor of Business Administration (BBA)


Department of Finance and Business Law


Jaideep Chowdhury

Qingfeng Liu

Mark Graham


Capital structure is one of the most important topics in Corporate Finance, and still attracting many famous scholars to explain factors that affect firms’ choice of capital structure. In this paper, we first discuss the importance of capital structure to a company itself, and to its investors. Secondly, I will introduce the concept of operating leases as an important component of debt. Then, we review the most famous capital structure theories to see what factors affects theoretically optimal capital structure and CFO decisions on capital structure. Finally, I point out some statistical issues in studying capital structure and suggest some remedies to these problems.



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